Andreasen, Martin M.; Ferman, Marcelo; Zabczyk, Pawel - European Central Bank - 2012
This paper develops a DSGE model where banks use short-term deposits to provide firms with long-term credit. The demand for long-term credit arises because firms borrow in order to finance their capital stock which they only adjust at infrequent intervals. Within an RBC framework, we show that...
